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Question JoJo Klum purchases a life insurance policy from BetterLifeCo. JoJo will pay a premium of $125 every week on Friday, and in return their
Question JoJo Klum purchases a life insurance policy from BetterLifeCo. JoJo will pay a premium of $125 every week on Friday, and in return their beneficiaries will receive a payment of $1,000,000 on the second Friday after JoJo dies. BetterLifeCo invests the premiums it receives and expects to earn interest (net of any costs) of j52 = 10.4% p.a. a) Illustrate all the cash flows associated with this scenario as a fully labelled timeline diagram. (Include JoJos death as an event of the timeline.)
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